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Top luxury villa investment opportunities in Dubai

Luxury villas for sale in Dubai have seen a notable 11.91% rise in the average price per square foot

Top luxury villa investment opportunities in Dubai

The 2023 Annual Property Rental Market Report for Dubai by Dubizzle paints a picture of a resilient and dynamic real estate sector, offering a range of opportunities for investors, residents and tourists alike. Amid new ready projects, a surge in sales of off-plan properties, and business-friendly policies, the city has attracted significant investor attention.

Luxury villas for sale in Dubai have particularly witnessed an increase of 11.91% in the average price per square foot. Here are the top areas to buy luxurious villas in Dubai.

Dubai Hills Estate

High net-worth investors and buyers have shown interest in Dubai Hills Estate. The rental yield of villas in Dubai Hills Estate has projected a promising ROI of 5.13%. In H1 2023, the prices of villas for sale in Dubai Hills Estate have averaged around $3.88 million (AED 14.3M).

The price per square foot of villas stands at $559 (AED 2,057), representing an increase of 13.26% from 2022’s second half.

After a surge in prices, investors and buyers have to pay $1,280,087 (AED 4.7M), $1,639,677 (AED 6.02M) and $4,654,810 (AED 17.1M) for 3, 4 and 5-bedroom villas for sale in Dubai Hills Estate, respectively.

Prices of villas in Dubai Hills Estate have shown an increase of 14.02%, according to the DLD transaction data.

DAMAC Hills

According to the user searches, next on our list of luxury neighbourhoods for buying a villa is DAMAC Hills. Providing an impressive 7.04% ROI, the prices of villas for sale in DAMAC Hills have risen overall.

Price per square foot has averaged $345 (AED 1,271) for villas in DAMAC Hills in H1 2023. Following 5.05%, 1.09% and 7.28% surges in three, four and five-bedroom villas for sale in DAMAC Hills, sales prices have averaged $738,687 (AED 2.71M), $759,841 (AED 2.79M) and $1,658,350 (AED 6.09M), respectively.

According to the DLD data, the cost of villas for sale in DAMAC Hills has averaged $1,131,087 (AED 4.15M) in H1 2023.

Arabian Ranches

Arabian Ranches has maintained its prominent position based on user trends on Dubizzle. The average cost of villas for sale in Arabian Ranches is valued at $1,692,147 (AED 6.22M) delivering a solid ROI of 6.05%.

The price per square foot has gone up to $329 (AED 1,211), increasing by 1.55% compared to H2 2022.

Prices of 3-bedroom villas for sale in Arabian Ranches have received an uptick of 5.66%, increasing sales price to $896,477 (AED 3.29M). Additionally, sales prices of four and five-bedroom villas have inclined to $1,268,964 (AED 4.66M) and $2,085,972 (AED 7.66M).

As per the DLD transactions, the villas in Arabian Ranches have witnessed a significant uptick in H1 2023.

Other popular areas, such as Palm Jumeirah and Jumeirah Park, have also continued to gain the interest of high-end investors. The prices for villas for sale in Palm Jumeirah have averaged $ 11,471,925 (AED 42.1M). Besides, the villas provide an ROI of 3.78%. However, the prices of villas have plunged by 13.60% in H1 2023 based on the DLD transaction data.

Meanwhile, villas for sale in Jumeirah Park have recorded the highest ROI of 9.64%. According to the DLD transaction data, the prices of villas in Jumeirah Park have risen to $1,375,340 (AED 5.05M), compared to $1,296,181 (AED 4.76M) in H2 2022.

With more and more Dubai residents seeking to put down their roots in the emirate and buy homes instead of renting in the long term, the report also pointed out that high ROIs in certain areas highlight them as particularly lucrative for investment purposes. Areas like Liwan, Green Community, DIP, and Al Barari showcase impressive returns, indicating strong investor interest and potential for long-term gains.